The closure of Trimingham?s and Smith?s may bring opportunities to other medium sized retailers, according to other shop owners.

But Pierre Dutoya, group manager of Hornburg Calypso, said the businesses that succeed will be those who introduce international brands that are popular with Bermuda?s sophisticiated shoppers.

And Somers Cooper, the general manager of A.S. Cooper, said he was concerned about the lack of high quality retail space in Hamilton following the closure of Trimingham?s.

Mr. Dutoya said the closure of the Front Street institution in July means stores such as Gibbons Company, Coopers, and the Hornburg Group will be larger players than they used to be.

Mr. Dutoya said the Hornburg Group, which runs a chain of stores including French Connection, Calypso, Max Mara, Voila and Benetton has experienced doubt digit sales growth since June, before the closure of Trimingham?s.

Overall, apparel sales fell 22.5 percent year over year in August, after falling 6.1 percent in July, according to Government?s Retail Sales Index report.

The report said ?almost all apparel retailers experienced double digit sales growth this month?, but it was not enough to offset the closure of Trimingham?s.

At the same time, overseas purchases by Bermuda residents rose just 1.9 percent after surging 21.4 percent in July.

Mr. Dutoya said the Hornburg Group, Gibbons and Coopers have succeeded because they have been able to introduce brands popular to customers on the Island.

?The consumer in Bermuda is very sophisticated so you need to be able to respond to consumer demand and you must have imagination and a vision of the new market.?

Mr. Dutoya said global trends in fashion affect Bermuda and new luxury high end brands such as Kenneth Cole and Louis Vuitton have been made popular through fashion programmes on television and the Internet.

But he warned that it would be extremely difficult for small new players without significant resources to enter the market to introduce new ideas.

Mr. Cooper, the co-chairman of the retail division of the Chamber of Commerce, said he is optimistic that sales will increase and said sales have not declined as badly as he expected before the closure of Trimingham?s.

Mr. Cooper said opportunities will be presented in areas such as cosmetics, but he was concerned about the lack of retail space in Hamilton.

?The retail industry needs more space to grow,? he said. ?A huge amount of space is out of supply with the Bank of Bermuda?s acquisition of the Trimingham?s property on Front Street.?

?Retail sales are affected by the amount of space per square foot. If the former retail establishment switches over to office space it could reduce the ability to increase sales.?

Mr. Cooper said it will be a big gamble for small entrepreneurs to enter the market as the cost of retail space was expensive and the cost of doing business in Bermuda was becoming more expensive.

?It will be a challenge to address what residents are looking for and if we are not able to do this residents will go overseas,? he added.